Having bad credit can limit your ability to borrow money. It also helps determine how much you pay for car insurance. There are a few states that prohibit car insurance companies from taking a driver's credit history into account when determining rates, but Arkansas is not one of them. Drivers with bad credit in Arkansas can expect a credit check when they attempt to get car insurance. A poor credit score won't prevent you from getting coverage, but it may force you to pay more for it.
Insurify's comparison tool will help you make sure you're getting the best possible quote even with a bad credit rating. You can have peace of mind you're not paying any more than need to, and customers save $48 per month on average.
Drivers with bad credit pay a little less than three percent more on car insurance than average in Arkansas. Insurers will look at factors such as your total debt and payment history to determine your insurance credit score and your risk level, according to the Insurance Information Institute. Car insurance companies do this to calculate the chances that you will file a future claim. Your insurance credit score is just a portion of what determines your car insurance rate. Your driving record and claims history also factor into how much you pay.
Although drivers with bad credit in Arkansas don't pay that much more for car insurance, it's still worth maintaining good credit to keep your costs low.
There are car insurance companies that won't check your credit as you try to get coverage. It's not always the best idea to buy a policy from one of these companies, however. The trade-off for not going through a credit check is you may end up paying more for your car insurance than you would with a standard car insurance company. It might be worth it to go through the credit check if it means paying less for your car insurance.
Whether you wind up with a policy with or without a credit check, get quotes from multiple companies to help you find the best price.
You should have no trouble finding car insurance in Arkansas, even if you have bad credit. There are a number of companies willing to insure drivers with low credit scores. Some even offer average monthly rates below $200. Direct Auto ($145 per month on average) and Dairyland Insurance ($155) are two of the least expensive car insurance companies for people with bad car insurance in Arkansas.
|Carrier||Avg. Monthly Cost|
|Hallmark Insurance Company||$190|
|American Family Insurance||$221|
|Midvale Home & Auto||$229|
Drivers with excellent credit pay the least per month for car insurance in Arkansas, as expected. What's more surprising is just $1 separates the average monthly car insurance cost for Arkansas drivers with good and average credit.
|Credit Tier||Avg. Monthly Cost|
Arkansas drivers with bad credit will find that car insurance isn't inexpensive, regardless of where they live. Fort Smith has one of the lowest average monthly insurance rates at $157. Jonesboro's average monthly insurance rate for drivers with poor credit is a little less than $200, and rates go up from there.
|City||Credit Tier||Avg. Monthly Cost|
|Hot Springs National Park||Poor||$210|
|North Little Rock||Poor||$234|
Insurance prices and policies can vary significantly between companies, and a state like Arkansas draws a wide variety of choices when factoring insurance rates for drivers with bad credit.
Insurify's rate comparison tool will help you make sure you're getting the best possible quote based on your needs and location. You can have peace of mind you're not paying any more than you need to, and customers save $585 per year on average.